The government has the capacity to influence the level of output in the short run by utilizing monetary and fiscal policy. There exists some disagreement as to whether the government should endeavor to stabilize the economy. The given statement is true.
<h3>What is the monetary and fiscal policy?</h3>
Monetary policy exists as a set of actions to control a nation's general money supply and achieve economic growth. Monetary policy strategies contain revising interest rates and changing bank reserve conditions. Monetary policy exists commonly categorized as either expansionary or contractionary.
In economics and political science, the fiscal policy exists as the use of government revenue assemblage and expenditure to control a country's economy. Fiscal policy exists the use of government spending and taxation to influence the economy. Governments typically employ fiscal policy to promote strong and sustainable growth and decrease poverty.
To create an economy more stable, active stabilization policy instruments that mitigate the effect of pessimism and optimism waves stand advocated. The waves of pessimism among consumers and businesses show the fall in aggregate demand. This fall in aggregate demand can be partly or fully offset by raising the money supply because the increase in money supply boosts aggregate demand.
The government has the capacity to influence the level of output in the short run by utilizing monetary and fiscal policy. There exists some disagreement as to whether the government should endeavor to stabilize the economy.
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Answer:
The correct answer is: the additional product generated by additional units of an input will eventually diminish.
Explanation:
The law of diminishing marginal returns states that with each additional unit of input employed the marginal product of each additional input will go on declining.
This is why the total product will increase at first but after reaching a certain point it will start declining. The total product will be maximum at the point where the marginal product is zero. When marginal product becomes negative the total product will decline.
Answer:
B. Real wages for university employees will rise.
Explanation:
Increase in income is @ 5%, and that the actual inflation is only 4% that is less than the increase in income. Accordingly, the company is paying more to the employees, and accordingly their wages have increased.
The amount of money available in real terms is more than the actual money, held by the employees earlier.
This is all because the actual increase in inflation rate is less than the increase in salary of employees.
Answer: discount on bonds payable
Explanation:
Based on the information given, since the sum of the fair value of the warrants and the face amount of the bonds exceeds the cash proceeds, then the excess will be reported as the discount on bonds payable.
The discount on the bonds payable occurs in a scenario whereby the bonds are issued for a lesser amount than their face or their maturity amount.
The reason for this is when the bonds have a stated interest rate that is smaller than market interest rate for similar bonds.
Answer:
False ANSWER: True o One implication of the bird-in-the-hand theory of dividends is that a given reduction in dividend yield must be ...
Explanation:
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